Troubled airlines cut flights, plan layoffs

• Aloha Airlines orders flight cutback of 26%

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Airlines, slammed by last week's terrorist attacks, saw their stock values fall sharply yesterday, as they pressed for at least a $15 billion federal bailout to rescue them from financial collapse.

Even as they tried to restore normalcy, major airlines cut back scheduled flights and warned that plummeting reservations and rising costs could lead to bankruptcy.

President Bush directed his staff to draw up a list of ways to help the airlines cope with economic losses. The House was also moving quickly on legislation that would provide at least $15 billion in grants and credit to the industry.

Among the developments:

• US Airways expects to lay off 11,000 employees and cut its nationwide service by 23 percent.
• America West Airlines, the eighth-largest U.S. air carrier, plans to cut about 2,000 jobs and 20 percent of its flights
• Virgin Atlantic Airways plans to pare back service by 20 percent and cut about 1,200 employees.
• American Airlines will announce layoffs later this week, a company official said. The carrier will cut service by 20 percent.
• Continental, the fifth-largest carrier, laid off 2,000 employees, more than one-fifth of its work force, and cut its schedule by 20 percent.
• Air Canada will cut flights between Canada and the U.S. by 20 percent.
• Spirit Airlines Inc., a low-cost, East Coast carrier, said it will lay off as many as 800 employees, or a third of its work force.
• National Airlines of Las Vegas cut back its operations by 20 percent Sunday and laid off 300 of its 1,300 workers.
• Midway Airlines of North Carolina closed down last week while in the midst of reorganizing its financially troubled business, laying off 1,700 employees.
• Delta, Northwest and United have trimmed schedules by 20 percent.